1. An employee leasing company may satisfy its obligation to provide coverage for workers’ compensation for the employees that the employee leasing company leases to each client company by:

(a) Confirming that the client company has obtained a policy of workers’ compensation insurance directly from an insurer, and maintains that policy, which covers all of the employees of the client company, including, without limitation, the employees leased from the employee leasing company, subject to the same requirements and conditions as if the client company were the sole employer of the leased employees for the purpose of providing coverage for workers’ compensation;

(b) Confirming that the client company is a member of an association of self-insured employers which is certified by the Commissioner and which has assumed responsibility, and maintains responsibility, for covering all of the employees of the client company, including, without limitation, the employees leased from the employee leasing company, subject to the same requirements and conditions as if the client company were the sole employer of the leased employees for the purpose of providing coverage for workers’ compensation;

(c) Confirming that the client company is certified by the Commissioner as a self-insured employer which self-insures all of the employees of the client company, including, without limitation, the employees leased from the employee leasing company, subject to the same requirements and conditions as if the client company were the sole employer of the leased employees for the purpose of providing coverage for workers’ compensation;

(d) Obtaining a policy of workers’ compensation insurance directly from an insurer on a multiple coordinated policy basis, and maintaining that policy, which covers all of the employees leased to the client company or all of the employees leased to the client company and other client companies affiliated with the client company such that:

(1) The policy covers the liability of both the employee leasing company and the client company or companies for payments required by chapters 616A to 616D, inclusive, or chapter 617 of NRS;

(2) A separate policy is issued to or on behalf of each client company or group of affiliated client companies under the multiple coordinated policy; and

(3) The employee leasing company controls payments and communications related to the policy; or

(e) Obtaining a policy of workers’ compensation insurance on a master policy basis directly from an insurer, and maintaining that policy, which:

(1) Covers some or all of the employees of the employee leasing company who are leased to one or more client companies; and

(2) May cover all of the employees of the employee leasing company who work directly for the employee leasing company and are not leased to any client company.

2. With respect to a policy of workers’ compensation insurance described in paragraph (a) of subsection 1:

(a) The policy may name the employee leasing company as an additional insured; and

(b) If the employee leasing company is licensed as a producer of insurance pursuant to NRS 683A.261 and is authorized by the insurer, the employee leasing company may negotiate coverage, collect premiums on behalf of the insurer and otherwise act as an intermediary with respect to the policy.

3. If an employee leasing company or a client company maintains a policy of workers’ compensation insurance which provides coverage for leased employees, each insurer insuring leased employees shall report to the Advisory Organization, as defined in NRS 686B.1752:

(a) Payroll and claims data for each client company in a manner that identifies both the client company and the employee leasing company; and

(b) The status of coverage with respect to each client company in accordance with any applicable requirements regarding proof of coverage.

4. If the services that an employee leasing company offers to a client company do not include obtaining and maintaining a policy of workers’ compensation insurance for the employees which the employee leasing company will lease to the client company, the employee leasing company shall:

(a) Before entering into an agreement with the client company to provide services as an employee leasing company, provide written notice to the client company that the client company will remain responsible for providing coverage for workers’ compensation for all of the employees of the client company, including, without limitation, the employees leased from the employee leasing company; and

(b) In the written agreement with the client company to provide services as an employee leasing company, clearly set forth the responsibility of the client company to provide coverage for workers’ compensation for all of the employees of the client company, including, without limitation, the employees leased from the employee leasing company.

5. If an employee leasing company offers to provide coverage for workers’ compensation for the employees that the employee leasing company leases to a client company in accordance with paragraph (d) or (e) of subsection 1:

(a) The coverage for workers’ compensation must not take effect until the client company executes the written agreement required by NRS 616B.688 between the employee leasing company and the client company; and

(b) The written agreement required by NRS 616B.688 between the employee leasing company and the client company must:

(1) Explain that coverage for workers’ compensation does not take effect until the effective date designated by the insurer in the policy of workers’ compensation insurance;

(2) Provide that, while the policy of workers’ compensation insurance is in force, the employee leasing company will pay all premiums required by the policy, including, without limitation, any adjustments or assessments, and will be entitled to any refunds of premiums;

(3) Set forth the procedures by which the client company or the employee leasing company may terminate the agreement and any fees or costs payable upon termination;

(4) Provide that, except as otherwise provided by law, all services provided by the employee leasing company to the client company will cease immediately on the effective date of any termination of the agreement;

(5) Provide that the insurer from whom the policy of workers’ compensation insurance is obtained by the employee leasing company has the right to inspect the premises and records of the client company;

(6) Provide that the loss experience of the client company will continue to be reported in the name of the client company to the Commissioner and will be available to subsequent insurers upon request;

(7) Provide that the policy of workers’ compensation insurance covers only those employees acknowledged in writing by the employee leasing company to be employees of the employee leasing company who are being leased to the client company;

(8) Explain that the client company is responsible at all times for providing coverage for workers’ compensation for any employees of the client company who are not leased from the employee leasing company; and

(9) Provide that the client company must provide satisfactory evidence of the coverage required by subparagraph (8) to the insurer from whom the policy of workers’ compensation insurance is obtained by the employee leasing company.

6. Nothing in this section prohibits the employees of an employee leasing company who are leased to one or more client companies from being considered as a group for the purposes of any eligibility for dividends, discounts on premiums, rating arrangements or options or obtaining policies with large deductibles.

7. The exclusive remedy provided by NRS 616A.020 applies to the employee leasing company, the client company and to all employees of the client company, including, without limitation, the employees leased from the employee leasing company, whether the employee leasing company or the client company provides the coverage for workers’ compensation.

8. The Administrator and the Commissioner may adopt regulations to carry out the provisions of this section.

(Added to NRS by 2009, 1123)